Federal Tax Plans Compared
April 22, 2010
Proposal to Make Bush Tax Cuts Permanent Would Result in $35,722 Break for Richest 1% in Ohio, Higher Taxes for Ohio’s Middle Class
As Capital Hill debates making the Bush tax cuts permanent, Citizens for Tax Justice analyzes the impact of the President’s approach and that of the Republicans. The President would ease the burden on middle and lower income families by making permanent the increase in Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) included in last year’s federal stimulus package, as well as institutionalizing the Bush tax cuts for 98 percent of Americans (all but the wealthiest two percent of American families, whose tax cuts would be allowed to expire).
Eighty percent of Ohio earners (the bottom four income quintiles, which includes lower and middle income families) would see a bigger tax benefit under the Obama’s approach than the Republican’s. The wealthiest one percent of Ohio families would still see their taxes reduced, but the average benefit of the Republican approach for these top earners ($57,986) is reduced to an average of $22,264 under the President’s approach.
Read about it in the national report and Ohio fact sheet released jointly by Citizens for Tax Justice and Policy Matters Ohio.